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Home My WebLink About13. 15-172 APRIL 14, 2015 15-172 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE PROFESSIONAL SERVICE AGREEMENT WITH TYLER TECHNOLOGIES INC. FOR ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE PACKAGE ($665,378.00) INITIATED BY: PURCHASING DEPARTMENT BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized to enter into and take those steps necessary to implement an appropriate agreement with Tyler Technologies Inc. for Enterprise Resource Planning (ERP) Software in the amount of six hundred sixty-five thousand three hundred seventy-eight dollars ($665,378.00). Acct. No. 323-0110-7230-06526 Equipment Fund – Computer Software CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh,Wisconsin �I}\, Or OShkOSh 54903-1130 l� T � � QIHKO.IH TO: Honorable Mayor and Members of the Common Council FROM: Jon G. Urben, General Services Manager DATE: April 7, 2015 RE: Approve Professional Service Agreement with Tyler Technologies Inc. for Enterprise Resource Planning (ERP) Software Package and Approve Purchase Pursuant to State of Wisconsin Cooperative Purchase with SHI International Corporation far Microsoft Software Licenses BACKGROUND For the last several years the city has identified the limitations of our financial software system and the inefficiencies of our workflow processes. These systems have created duplication of efforts, operational challenges and redundant warkflow. In addition, because the current software is no longer in product development and its product support is being phased out, the city has determined it must secure a long term fully integated enterprise resource planning (ERP) solution which will promote transparency and efficiency among all city departments. The implementation of an enterprise system will also allow for the optimization of workflow processes, accessibility, and alignment of functions across the organization. In recognition of this critical need the Common Council adopted in their 2015-16 strategic plan the need for the implementation of an ERP solution to address the goal of developing a high performing effective government. In commitment to this priority goal the Common Council allocated $1.2M in the CIP Major Equipment budget over three years(2015-2017). A cross-functional committee of employees from various departments and divisions including Finance, Accounting, Collections, Purchasing, Payroll, Benefits, Human Resources, Information Technology and others was established to develop a Request for Proposal (RFP) document seeking vendors for an ERP software solution. The city sought proposals for a commercial off-the-shelf suite designed for an enterprise environment. The ERP will assist the organization in accomplishing its mission of managing enterprise resources in order to provide the city services that meet the operational and municipal requirements. The ERP will provide the Oshkosh Common Council, citizens and city staff with a strategic and tactical view of municipal performance. � ti�• Priorities of the ERP requirements will include the ability to: • Provide capability for financial reporting, budgeting, and asset management built for multiple sites ar locations to enable comprehensive, flexible reporting and management based upon sites, departments, division and special funds. • Provide capability for budgeting and forecasting at all arganizational levels, against single accounts, sites, departments, divisions. • Provide core financial components to support all accounting and business activities. • Develop and track budgeting related to capital improvement programs and their associated projects. • Develop workflow functions to facilitate the automation of business processes among multiple departments in which documents, information, and/or tasks are passed from one user to another for action or approval,according to a set of procedural rules. Staff surveyed comparable or larger municipalities and counties to Oshkosh and concluded there were three possible providers that could deliver an integrated ERP with all the necessary modules and functionality requirements that specialize in municipal operations and financial systems. These three providers were also identified for their market dominance of product development, longevity, support and evolution. RFP's were sent out to these three firms in September, 2014. ANALYSIS The RFP's were due November 11, 2014. An evaluation committee representing numerous functional areas was established to evaluate the sole proposal received from Tyler Technologies Inc. The committee evaluated Tyler's proposal against the RFP's stated criteria which included technical requirements, implementation strategy and timelines, demonstrated performance of proposed system elsewhere in the public sector, timeliness and professionalism of on-going support, cost and quality of software and implementation services, cost of on-going maintenance and value-added qualities. The evaluation committee concluded Tyler's proposal met all the RFP criteria and invited Tyler to present onsite information/demonstration sessions of their software at City Hall in early February. City employees from all departments were invited to attend any of the 17 different informational sessions about Tyler's software and modules. Attendance at the sessions totaled 251. Employee surveys of those that attended the sessions indicated that 68% felt that Tyler's proposed ERP software and modules would create efficiencies and improvements within their day to day operations. The evaluation committee concluded Tyler's proposed ERP solution provided several enhancements and improvements to the city's current financial software capabilities. Some of these included the integration of systems, improved workflow, the ability to trend and forecast, improved reporting and transparency, improved audit trail and accountability, ability to establish and track internal/external metrics and benchmarks and the ability to create tools for citizen engagement. The ERP will provide functional modules for the following areas: general ledger, accounts payable, accounts receivable, purchasing, work orders, performance based budgeting, fixed assets, inventory, project and grant accounting, contract management, cash receipting, cash management,bid management,tax billing,utility billing, parking tickets, animal licensing, citizen self-service, and e-procurement(online vendor registration). The evaluation committee determined significant cost savings would be realized with Tyler's proposal because of our existing relationship with Tyler's modules and software. Having purchased portions of Tyler's Munis package in recent years will allow the city to maximize our existing investment within this ERP solution by activating these new modules. Based on Tyler's proposal and the critical need of this software, it was the consensus of the evaluation committee, the Finance Director and the City Manager that the Tyler proposal provided a sound solution at a competitive price to address the city's current and long term needs for its ERP. Assuming Council approval of this recommendation staff anticipates the following timelines: facility modifications beginning April, 2015 and completion by September 1, 2015; initial workflow assessments beginning August 1, 2015; initial implementation beginning January l, 2016 with full implementation completion by summer, 2017. FISCAL IMPACT The original estimate for the full implementation of this ERP project was $1,200,000 over three years (2015-2017). This implementation will require software, hardware, equipment and related necessary workstation and facility modifications. Because of the city's existing investment in the Tyler Munis package the city will realize an estimated $200,000 in cost savings from the original projected budget from the 2015-2017 CIP to a revised total project budget of$1,000,000. A summary of cost areas for this project include: Tyler Technologies Inc. ERP Software $665,378 Microsoft licenses $165,651 Server hardware $12,151 Miscellaneous computer hardware $15,810 Facility modifications/workstations $118,000 Contingency 23 O10 $1,000,000 Any variances to these costs would be adjusted by the contingency. This ERP project will necessitate the purchase of Microsoft software licenses to update our computers to allow for the new ERP software and implementation. Purchasing has determined that SHI International Corporation holds the State of Wisconsin Department of Administration contract (#15-20800- 001) for IT-Microcomputer Software. The total state contract price for the required Microsoft software licenses is $165,651. In addition, by moving towards one ERP solution the city will consolidate three maintenance software agreements into one agreement which are expected to result in a net budgetary savings of approximately $15,000 annually. Costs for this project will be charged to A/N# 323-0110-7230-06526. Some of these costs will be charged to the appropriate utility funds. RECOMMENDATION Purchasing is recommending the Common Council approve two actions with this resolution. 1) Section 12-16 of the Municipal Code provides that subject to the approval of the City Manager professional services of a specialized nature, including computer software applications, systems development and implementation, may be procured without following a competitive bidding or quotation process. In accordance with Section 12-16 and because this purchase in excess of $75,000, Purchasing recommends that the Common Council award the ERP software package to Tyler Technologies, Inc., 5101 Tennyson Parkway, Plano, TX, 75024 for $665,378. 2) Section 12-15 of the Municipal Code provides that subject to approval of the City Manager, cooperative purchases pursuant to a contract with any other local, state or federal governmental unit or agency may be made without following a competitive bidding or quotation process. In accordance with Section 12-15 of the Municipal Code and with approval by the City Manager, Purchasing recommends that the Common Council approve the purchase of Microsoft soflware licenses for the ERP implementation pursuant to the State of Wisconsin Cooperative Purchase to SHI International Corporation, 33 Knightsbridge Road, Piscataway,NJ, 08854 for$165,651. Respectfully Submitted, Approved: �f�s�, ,,�e � k � Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager cc John Fitzpatrick,Assistant City Manager/Director of Administrative Services Trena Larson, Director of Finance